GBP/USD warming up for 1.7000?

FXStreet (Edinburgh) - The GBP’s decline seems to have found decent support in the area of 1.6960 on Friday, with the GBP/USD now heading towards 1.6990.

GBP/USD weaker post-GDP

The pair is suffering a disappointing UK docket this week, retreating for the third consecutive week after posting multi-year tops just below 1.7200 the figure. A neutral-to-dovish perception from the BoE minutes plus a softer report from retail sales and an ‘in-line’ GDP figures for the second quarter has combined to drag spot lower. Camilla Sutton, Chief FX Strategist at Scotiabank, noted the short term technical studies are bearish, adding, “Accordingly, the MACD is well into sell territory; the 9-day MA has crossed below the 21-day and the general chart pattern warns of building downside risk”.

GBP/USD levels to consider

The pair is now losing 0.03% at 1.6981 with the next support at 1.6967 (low Jul.24) followed by 1.6952 (low Jun.25) and finally 1.6920 (low Jun.18). On the flip side, a breakout of 1.7054 (high Jul.24) would aim for 1.7078 (76.4% of 1.7095-1.7023) and then 1.7095 (high Jul.23).